Desktops Offer More Margins than Notebooks

Desktops are giving tough competition to the growing notebook market by virtue of higher selling margins and good service revenues.

And even then many end-users shifted their loyalties from desktops to notebooks for portability, high-end features and power issues. However, vendors are answering all these concerns by introducing feature-rich LCD monitors in the market. This has given resellers fresh opportunities to concentrate on the traditional desktop market. Furthermore in terms of services, resellers are earning more on desktops than notebooks.

According to Jayesh Soni, Proprietor, Omega Computers, Raipur, "Selling desktops is much more profitable than notebooks, as they offer more margins to us. We can expect a margin of Rs. 1,800 to Rs. 2,000 on one desktop that we sell. As far as local market is concern, we're getting good demand for desktops. The market ratio is 60:40 for desktops and notebooks. Furthermore, feature-rich LCD monitors are paving the way for the overall desktop market here."

Simulating Soni on margins, Vinod Marwah of High Tek Technologies, Mumbai, said, "Although notebooks are gaining popularity in the market, desktops offer more selling margins, and are relatively profitable in terms of services also. We can expect Rs. 2,000 from every desktop we sell, and in notebook we can expect around Rs. 1,000. Furthermore, services is one more area where desktop is better than notebook from reseller's perspective."

Industry-wise desktops are still more popular in BFSO, retail and ITeS, and even in the consumer segment, the demand for desktops is very high. In the recent past, major vendors have phased out the production of CRT monitors, and are offering high-end LCD monitors only. Enhanced gaming capabilities, in-built TV, and stylish designs are making desktop market colorful than ever before. Additionally, helping partners to continue with their desktop business, vendors are introducing products that offer more value proposition to the end-users. Specially targeting upcountry markets, vendors are offering sales momentum to the channel partners.

Sharing more such opinion with ChannelTimes, Nishant Shukla of Nishant System, Bhavnagar, said, "On an annual basis, we receive good business out of desktop services. However, notebooks are gaining popularity with compatibility and mobility."

With portability and convenience, notebooks are becoming popular computing device these days, however; desktops will continue to find their buyers largely due to their utility.

http://www.channeltimes.com/India/News/Desktops_Offer_More_Margins_than_Notebooks/551-103785-1095.html